STAMFORD, Conn., Feb. 15, 2019 /PRNewswire/ -- Tronox Limited
(NYSE:TROX) ("Tronox" or the "Company"), a global mining and
inorganic chemicals company, today announced the redemption of
Exxaro's 26 percent ownership interest in Tronox Sands LLP, a U.K.
limited liability partnership ("Tronox Sands"), for consideration
of approximately ZAR 2.06 billion (or
approximately $148 million) in cash.
The transaction is the first step in a series of transactions
contemplated by the Mineral Sands Transaction Completion Agreement
(the "Completion Agreement") announced on November 26, 2018, which addresses several legacy
issues related to Tronox's 2012 acquisition of Exxaro's mineral
sands business and its ongoing relationship with Exxaro. The
redemption is being wholly funded by cash currently held in
Tronox's 74 percent owned South African subsidiaries and will
enable future cash generated in South
Africa to be repatriated for general corporate purposes.
"We are pleased to be moving forward with the transactions
provided for in the Completion Agreement that will allow us to
conclude matters from the 2012 mineral sands transaction in a
manner that benefits both Exxaro and Tronox," said Jeffry N. Quinn, president and chief executive
officer of Tronox. "The Completion Agreement enables Tronox to
proceed with its re-domiciliation to the UK, ensures an orderly
sale of Exxaro's Tronox shares, including the option to directly
repurchase any shares Exxaro elects to sell, and facilitates our
ability to purchase Exxaro's 26 percent ownership interest in our
South African subsidiaries. With the new South African mining
charter in the process of being implemented, acquiring full control
of our South African operations will increase our earnings from
these valuable assets to the benefit of our shareholders."
The disposal by Exxaro of its 26 percent ownership interest in
Tronox Sands was originally agreed as part of the 2012 acquisition
by Tronox of Exxaro's mineral sands business. The redemption price
is equal to Exxaro's indirect share of the loan accounts in
Tronox's South African subsidiaries, as of February 15, 2019.
Tronox Sands holds intercompany loans that Exxaro held prior to the
2012 acquisition of Exxaro's mineral sands business.
Media Contact: Melissa
Zona
+1 636.751.4057
Investor Contact: Brennen
Arndt
+1 203.705.3730
About Tronox
Tronox Limited is a vertically integrated mining and
inorganic chemical business. The company mines and processes
titanium ore, zircon and other minerals, and manufactures titanium
dioxide pigments that add brightness and durability to paints,
plastics, paper and other everyday products. For more information,
visit tronox.com.
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SOURCE Tronox Limited